A common goal of high-net-worth clients, especially those who own businesses or work in the business world, is to pass along the entrepreneurial spirit to their children. That feeling can be difficult to foster if the children don’t have any motivation to strike out on their own because they get all their needs met through their family’s wealth. “The Entrepreneur’s Trust,” p. 46, by Pamela L. Lucina and Eric Czepyha, offers a solution to this conundrum. They recommend a trust structure that encourages beneficiary involvement, financial education and collaboration on new investments into private businesses under the guidance and diligence of a professional trustee. Their article is part of our Fiduciary Professions Committee Report, which also features articles on trust-owned Internal Revenue Code Section 529 plans, the benefits of a corporate versus an individual trustee and a recap of important cases that illustrate trends in fiduciary law.
This month’s issue also debuts a new column, “Practical Practice Solutions,” by Martin M. Shenkman and Joy Matak. The column will focus on common questions that clients may have about their estate plans and how to resolve them. For example, this month’s column focuses on how to help clients who are getting tired of paying the income taxes on a grantor trust, and future columns will discuss clients’ concerns about the possible changes in tax laws included in President Biden’s proposed budget and the impact of state income taxes on trusts.